Audit 323460

FY End
2023-12-31
Total Expended
$12.32M
Findings
2
Programs
2
Year: 2023 Accepted: 2024-10-01

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
501198 2023-001 - Yes N
1077640 2023-001 - Yes N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $10.83M Yes 1
14.195 Project-Based Rental Assistance (pbra) $1.49M Yes 0

Contacts

Name Title Type
V9X8MGV43ZZ6 Malcolm A, Punter Auditee
2122814887 Luis Carlos Rivera Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Victory One Housing Development Fund Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Victory One Housing Development Fund Corporation and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
Title: US DEPARTMENT OF HUD - CAPITAL ADVANCE Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Victory One Housing Development Fund Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. On November 12, 1997, the Project entered into a Capital Advance/Building Loan Agreement under Section 202 of the National Housing Act of 1959 for the development of housing serving the elderly households. The HDFC was advanced $10,829,200. The advance need not be repaid so long as the housing remains available to elderly persons for at least 40 years.

Finding Details

Criteria - Replacement Reserves: Compliance Requirement - Owners shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in a federally insured depository in an interest-bearing account. All earnings including interest on the reserve must be added to the reserve. An amount as required by HUD will be deposited monthly in the reserve fund (Regulatory Agreement, item 5 A). All disbursements from the reserve must be approved by HUD (24 CFR sections 891.405 and 891.605). Condition: The Project did not make five of the required deposits to the replacement reserve account. Effect: The Project is not in compliance with the Regulatory Agreement. Context: The population included the 12 monthly cash disbursements from the operating account. Cause: There was not enough cash on hand to remit the required deposits. Repeat Finding: Item 2022-001. Recommendation: The Organization should have procedures in place to ensure deposits are completed on a timely basis in accordance with the requirements. Views of Responsible Officials and Planned Corrective Actions: The Organization acknowledges that the required replacement deposits had not been made due to cash flow constraints. The entity is taking steps to ensure that delinquent replacement reserve deposits are made as soon as is practicable.
Criteria - Replacement Reserves: Compliance Requirement - Owners shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in a federally insured depository in an interest-bearing account. All earnings including interest on the reserve must be added to the reserve. An amount as required by HUD will be deposited monthly in the reserve fund (Regulatory Agreement, item 5 A). All disbursements from the reserve must be approved by HUD (24 CFR sections 891.405 and 891.605). Condition: The Project did not make five of the required deposits to the replacement reserve account. Effect: The Project is not in compliance with the Regulatory Agreement. Context: The population included the 12 monthly cash disbursements from the operating account. Cause: There was not enough cash on hand to remit the required deposits. Repeat Finding: Item 2022-001. Recommendation: The Organization should have procedures in place to ensure deposits are completed on a timely basis in accordance with the requirements. Views of Responsible Officials and Planned Corrective Actions: The Organization acknowledges that the required replacement deposits had not been made due to cash flow constraints. The entity is taking steps to ensure that delinquent replacement reserve deposits are made as soon as is practicable.